Gold Price Forecast – Gold markets testing major resistanceGold markets rallied significantly on Friday to break above the $1250 level, an area that has been important more than once. I think that this is a good sign, and we will have to wait and see whether or not we get follow-through, but certainly things are looking up.
Gold markets rallied significantly during the trading session on Friday after the jobs number, breaking above the $1250 level, an area that has caused resistance in the past. Quite frankly, if we can break above the top of the range for the day on Friday, I think gold could take off to the upside to go much higher. Pay attention to the US dollar because if it falls, that could also push gold higher.
Gold Prices Video 10.12.18
Recently, the Federal Reserve has seem to quite a bit more dovish than in the past, and I think that has the Gold markets rallying as it should weigh upon the US dollar. Ultimately, if it weren’t for the negative economic numbers coming out of the European Union, the US dollar would probably be much lower based upon recent comments. However, if we do pull back I think we could go looking towards $1230 level, where the 50 day EMA sits. The market should continue to see a lot of volatility, and as we go into the end of the year it will be interesting to see whether not fresh money comes into this market. That being said, if we can break above the top of the candle stick for the Friday session I don’t see any reason why you shouldn’t take a shot at a bigger move. In fact, it could reach towards the top of the overall consolidation, meaning that we could go as high as $1400 over the longer-term.